The Accrual Basis of Accounting

question 208

Multiple Choice

The accrual basis of accounting:

• A)Is generally accepted for external reporting since it is more useful for most business decisions.
• B)Is flawed because it gives complete information about cash flows.
• C)Recognizes revenues when received in cash.
• D)Recognizes expenses when paid in cash.
• E)Eliminates the need for adjusting entries at the end of each period.